Trading update and trading statement for the year ended 27 December 2016 Delta EMD Limited (Incorporated in the Republic of South Africa) Registration number 1919/006020/06 ISIN: ZAE000132817 Share code: DTA (“Delta EMD” or “the Group”) TRADING UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 27 DECEMBER 2016 Trading update Shareholders are referred to the Group’s statement of unaudited results for the six months ended 27 June 2016 released on the Stock Exchange News Service (“SENS”) on 12 September 2016. As reported previously, the salvage and sale of the plant and equipment formerly located at the Group’s Nelspruit plant site are complete and payment has been received for those assets. Efforts to market and sell the Nelspruit plant site continue. The Nelspruit plant site includes a parcel of land historically leased by Delta EMD. That parcel was purchased and transferred to Delta EMD during December 2016 and payment for the parcel was made following year end. That parcel will be included in an eventual sale of the plant site. The remediation required under the environmental remediation order continues, and the second bi-annual report was submitted to the Department of Environmental affairs during December 2016. Trading Statement Paragraph 3.4 (b) of the Listings Requirements of the JSE Limited requires companies to publish a trading statement in the event that they are satisfied with a reasonable degree of certainty that the earnings per share and headline earnings per share for the period to be reported on next will differ from the previous corresponding reporting period by at least 20%. Delta EMD is currently finalising its results for the year ended 27 December 2016 (“the period”). Shareholders are advised that Delta EMD expects a profit per share for the period, as opposed to the loss per share of 85.2 cents reported for the previous corresponding reporting period. Earnings per share is expected to be between 25 cents and 30 cents, representing an expected improvement of more than 100% from the previous corresponding reporting period. Delta EMD also expects a headline profit per share for the period, as opposed to the headline loss per share of 105.3 cents reported for the previous corresponding reporting period. Headline profit per share for the period is expected to be between 25 cents and 30 cents, representing an expected improvement of more than 100% from the previous corresponding reporting period. The expected profit was realised through interest income, a part reversal of the environmental remediation provision resulting from revised cost estimates for the work still required by the remediation order, and a part reversal of the retention incentive provision. Delta EMD’s results for the year ended 27 December 2016 are expected to be released on SENS before the end of February 2017. The forecast financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external auditors. 27 January 2017 Nelspruit Sponsor RAND MERCHANT BANK (a division of FirstRand Bank Limited) Date: 27/01/2017 09:27:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.